What does the right of first refusal provide to its holder when purchasing real estate?

The right of first refusal is a contractual agreement that provides its holder with a specific preemptive right to purchase a property before the owner can sell it to a third party. This means that if the property owner receives an offer from another party, the holder of the right of first refusal has the opportunity to match that offer and purchase the property on the same terms. Essentially, it gives the holder a chance to acquire the property before it is sold to someone else, thus creating a protective advantage in the purchasing process.

The other options do not accurately describe the nature of the right of first refusal. Exclusive ownership of the property is not granted until the right is exercised and a purchase is made. The right does not provide the holder with the authority to demand lower prices, as it is contingent upon the prices and terms presented by third parties. Lastly, there is no automatic purchase involved; the holder must actively choose to exercise their right to purchase, typically by responding within a specific timeframe after becoming aware of the third-party offer. Therefore, the correct answer highlights the essence of the right as a preemptive purchasing opportunity.